NAB Morning Call Greenback goes even lower
Jan 27, 2026
Taylor Nugent, NAB markets economist known for FX, bonds and inflation analysis. He unpacks the weaker US dollar and the Aussie’s multi-year rise. He discusses geopolitics and political risk as drivers of currency moves. He outlines a rebound in business conditions and why data raise the odds of an RBA rate hike. He previews the Fed, Canada and key jobs and tech releases to watch.
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Broad US Dollar Slide Boosts Majors
- The US dollar slid sharply, pushing the AUD above ~0.698 and lifting majors like the euro and yen to multi-year highs.
- Markets saw risk-positive moves with oil, equities and gold rising while silver plunged, reflecting broad USD weakness.
Aussie Near Three-Year Peak
- Taylor Nugent noted the AUD hit near three-year highs around 0.6981 driven by a broad-based USD slide beyond just yen moves.
- The euro and pound reached multi-year highs while the DXY hit its lowest since March 2022, indicating widespread USD weakness.
Geopolitics Driving Dollar Diversification
- Taylor argued geopolitics and domestic US political uncertainty are likely background drivers prompting diversification away from the dollar.
- These structural concerns help explain USD weakness even without an obvious immediate catalyst.